High-involvement investment options

If you’re a confident investor and want a hands-on role in managing your investment, these options are for you.

If you’re choosing an investment option, make sure it’s suitable for your circumstances and level of risk you’re comfortable with.

Please note: As well as the options below, your employer may also offer different investment options specific to their scheme. For details of what these investment approaches are, check the information they’ve given you about their scheme.

1. Selfstyling investments lifestyle approach

Risk/return rating: Varies, depending on which funds you choose (our risk/return ratings)

Overview: This investment option gives you some freedom to choose which investment funds to use - but with the reassurance that, as you get closer to retirement, we’ll move your money into funds designed to help protect the level of income you could get when you retire.

How it works: Selfstyle lifestyling involves up to three stages:

Stage 1: Until 10 years before your chosen retirement date, we invest your money in 1-2 funds of your choice.

Stage 2 (optional): When you reach 10 years from retirement, we invest any new payments in 1-2 different funds of your choice. We’ll also gradually move the rest of your money into these funds.

Stage 3: The final stage can start between seven and three years from your retirement date (you choose). You have two options in this stage: a) You can invest 100% of any new payments into the Aviva Long Gilt Fund and have us gradually move the rest of your investment into this fund too; or b) You can invest 75% of any new payments in the Aviva Long Gilt Fund and 25% in the Aviva Deposit Fund, and have us gradually move the rest of your investment into these funds, in the same proportions.

Exactly how your money is split between funds when you start investing depends on how far from retirement you are at the time. The diagram below shows how we’ll split your investment between funds as you head towards retirement.

  Stage 1
at the start
Stage 2 (optional)
10 years before retirement
Stage 3
3 - 7 years before retirement
New payment Fund A - Your choice
Fund B (optional) - Your choice
Fund C - Your choice
Fund D (optional) - Your choice
100% into Aviva Long Gilt Fund
Or
75% into Aviva Long Gilt Fund
25% into Aviva Deposit
Existing investment N/A Moved monthly into this fund(s)
Or
Continue with original fund(s) for new payment and existing investments
Moved monthly (at the same percentages if applicable) into each fund(s)

Please be awarethat the value of investments can go down as well as up, so the value of your pension could be less than the amount paid in. As this investment approach works automatically and your money is moved on set dates, it may not move at a time that would give you the best return on your investment. We’ll write to you before we start moving your funds - and you can change your investment choice at any time.

2. Phased switching approach

Risk/return rating: Varies, depending on which funds you choose (our risk/return ratings)

Overview: This option gives you the freedom to choose your own investment funds - but with the reassurance that, as you get closer to retirement, we’ll move your money into funds designed to help protect the level of income you could get when you retire.

How it works: Phased switching involves two stages.

Stage 1: At first, we invest your money in up to 50 funds of your choosing, with the aim of growing the value of your pension pot.

Stage 2: Then, when you reach five years from your retirement date, we’ll start to gradually move your money as follows. You can choose whether to invest it either:

Please note that any new payments made into your plan after we start moving your money will be invested in your original fund choice.

Exactly how your money is split between funds when you start investing depends on how far from retirement you are at the time. The diagram below shows how we’ll split your investment between funds as you head towards retirement.

  Stage 1
at the start
Stage 2
5 years before retirement
New payment Up to 50 funds of your choice Continue with original fund(s)
Existing investment N/A Moved monthly into either:
100% into Aviva Long Gilt Fund
Or
75% into Aviva Long Gilt Fund
25% into Aviva Deposit Fund

Please be aware that the value of investments can go down as well as up, so the value of your pension could be less than the amount paid in. As this investment approach works automatically and your money is moved on set dates, it may not move at a time that would give you the best return on your investment. We’ll write to you before we start moving your funds - and you can change your investment choice at any time.

3. Choose your own funds

Risk/return rating: Varies, depending on which funds you choose (our risk/return ratings)

Overview: A very hands-on option, designed for experienced investors who are comfortable making their own investment decisions.

How it works:Choose up to 50 investment funds to create a portfolio that’s perfectly suited to you. Take your pick from our full range of over 250 funds from some of the world’s top investment companies. (Your employer may also offer a smaller, ‘core’ fund range for you to choose from. Check the pension scheme information they’ve given you for details.) If you choose this investment option, it’s important you review your choices at regular intervals.

Please be aware that the value of investments can go down as well as up, so the value of your pension plan could be less than the amount paid in.

Things to consider

This approach could be suitable for you if:

  • You don't want to make on-going investment decisions.
  • You want us to help safeguard your retirement income - as you get closer to retirement we'll gradually move your investments into funds that lower the risk to your pension.
  • You intend to swap your pension fund for an annuity* when you reach your selected retirement age.

It may be unsuitable for you if:

  • You want a hands-on role in managing your pension investments.
  • You're close to your retirement age - because there may be less opportunity for fund growth.
  • You don't intend to swap your pension fund for an annuity* - because this approach is designed to protect your retirement income.

Please note:

  • This investment approach works based on the age you've told us you want to retire at. So if you decide to retire earlier or later, it may be worth reviewing your investment choices.
  • You could receive a lower return from the funds your money is moved into than from the funds you were previously invested in.
  • If you intend to change your retirement plans, we recommend you speak to a financial adviser to go over your investment choices.
  • As the value of investments can go down as well as up, it may be worth less than the amount paid in.
  • There's a greater possibility that the investment returns on the funds you move to may not cover your charges.
  • Your money is moved on set dates, regardless of market performance and economic conditions at that time. As a result, it may not move at a time that gives you the best return on your investment.

* A pension annuity gives you a guaranteed income for life. You can buy it when you retire using the money you’ve built up in your pension plan.

Want to change your investment choice?

Changing your investment choice is easy. There are two ways you can do it:

  1. Online: register or log in to Pension Tracker
  2. By phone: call our group pension helpdesk on 0845 900 0817 (Monday to Friday, 9am to 5pm).

 

WC03112 09/2015

Choosing your own funds?

Read through our fund factsheets and performance data before deciding which ones to pick.

Risk/return ratings

The risk/return ratings we give each investment fund - and what they mean.

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Need some advice?

If you’d like a hand deciding where to invest your money, a financial adviser could help.